Tax Planning Using Private Corporations

Sheri Penner, Deloitte Private’s Tax Leader for Canada, highlights the proposed tax changes affecting private corporations in Canada that were announced on July 18, 2017. She explains the areas of concern and some of the potential results we can expect from these proposed changes.

On July 18, 2017, the Department of Finance released a consultation document and draft legislation containing proposals that, if enacted, will affect private companies and their shareholders.

Three tax planning strategies are being reviewed:

• Income sprinkling
• Holding a passive investment portfolio inside a private corporation
• Capital gains

To read a summary of the tax highlights, download a copy by clicking on “Download alert.”

Explore our other resources
 

• Updated “income sprinkling” proposals for private corporations
• Planning in light of uncertainty
• Capital Gains Implications
• Income splitting and LCGE changes
• Holding passive investments
• Deloitte's policy submission
• Webcast recording
• Updated tax proposals